How Local Governments Can Reform Pensions IF the “California Rule” is Overturned
How Local Governments Can Reform Pensions IF the “California Rule” is Overturned
In December of 2018, the California Supreme Court will hear arguments in what is generally referred to as the Cal Fire pension case. The ruling could potentially overturn what is commonly referred to as the “California Rule.” The current interpretation of the rule is that pension benefits, once increased, cannot be reduced for existing employees...
By Ken Churchill
In the Last 25 Years, Sonoma County’s Pension Liability Rose ELEVEN TIMES Faster Than Tax Revenues
In the Last 25 Years, Sonoma County’s Pension Liability Rose ELEVEN TIMES Faster Than Tax Revenues
In August of last year retired attorney George Luke sued the Sonoma County Employees Retirement Association (SCERA) and the Board of Supervisors (BOS) because according to County records they did not follow the law when pensions were increased in 2002 and 2003. According to the law, before increasing pension benefits the supervisors are required to...
By Ken Churchill
California Cities Facing Huge Pension Increases from CalPERS
California Cities Facing Huge Pension Increases from CalPERS
In their most recent actuarial reports CalPERS for the first time provided pension cost estimates for the next 8 years, from 2015 to 2023. How high are these costs going for California’s cities who retroactively increased their pensions at CalPERS urging over the past 15 years? To answer that question I looked at the largest...
By Ken Churchill
California Court Ruling Allows Pension Changes
California Court Ruling Allows Pension Changes
On August 17, 2016 the First Appellate District Court ruled on the lawsuit brought by the Marin Association of Public Employees against the Marin County Employees’ Retirement Association (MCERA) and State of California. The case was brought after MCERA eliminated pay items considered pensionable following the States enactment of the California Public Employees’ Pension Reform...
By Ken Churchill
How CalPERS has Created a Ticking Time Bomb
How CalPERS has Created a Ticking Time Bomb
During the Stockton bankruptcy Judge Klein called CalPERS the “bully with a glass jaw.” Klein meant that CalPERS, as a servicing company, has no standing in the bankruptcy because the pension obligation is between the public agency and their employees and retirees.
By Ken Churchill
The Devastating Impact of Retroactive Pension Increases in California
The Devastating Impact of Retroactive Pension Increases in California
On January 27th, 2015 Kern County declared a fiscal emergency citing lower tax revenues from oil producers and growing unfunded pension liabilities as the cause. A review of their pension costs and growth of their unfunded liabilities over the past decade indicates the word “growing” is an understatement. A more accurate term would be “soaring”....
By Ken Churchill
Sonoma County's Pension Crisis – Analysis and Recommendations
Sonoma County's Pension Crisis – Analysis and Recommendations
INTRODUCTION New Sonoma, a volunteer organization of financial experts and citizens concerned about the finances and governance of the County has just completed an extensive study of the County’s pension crisis. In addition to describing how the County has incurred over a billion dollars in unfunded pension and retiree health care liabilities, how the County...
By Ken Churchill
The Sonoma County Retroactive Pension Increase: Gross Incompetence or Billion Dollar Scam?
The Sonoma County Retroactive Pension Increase: Gross Incompetence or Billion Dollar Scam?
In 2002, the Sonoma County Board of Supervisors agreed to essentially increase pension benefits by 50% back to the date people were hired. However, County records show that the deal cut between the employees and the Supervisors stated that General employees would pay for the entire cost of the increase and Safety employees would pay...
By Ken Churchill
How Retroactive Pension Increases and Lower Investment Returns Have Blown Up Sonoma County’s Pension System
How Retroactive Pension Increases and Lower Investment Returns Have Blown Up Sonoma County’s Pension System
We should all care deeply about pension costs and the 400% increase in the costs over the past decade in Sonoma County. Why? Because every dollar going to over generous, retroactively enhanced pensions is taxpayer money that is not creating jobs, helping our fellow citizens, educating our children, or maintaining our roads and parks. Most...
By Ken Churchill